Mundoro and Freeport-Mcmoran Exploration Corporation Sign Earn-IN Agreement FOR Exploration of TWO Serbian Timok Licenses
LEGAL*46281289.2
MUNDORO AND FREEPORT-MCMORAN EXPLORATION CORPORATION SIGN EARN-IN AGREEMENT FOR
EXPLORATION OF TWO SERBIAN TIMOK LICENSES
July 30, 2018, Vancouver, BC - Mundoro Capital Inc. (TSXV: MUN, www.mundoro.com) ("Mundoro" or
the " Company") announces it has entered into an earn -in agreement (" Agreement") with Freeport -
McMoRan Exploration Corporation ("Freeport "), in which Mundoro has granted to Freeport an option
to earn-in to Mundoro’s Savinac and Bacevica exploration licenses (the “Freeport-Mundoro JV Project”)
located within the southern portion of the Timok Magmatic Complex (“Timok”) in Serbia. Timok is one
of the most prolific metallogenic domains in the Tethyan Belt. Timok hosts the Cukaru -Peki deposit and
the Serbian state-operated producing mines: the Bor copper porphyry underground mine (“ Bor Mine”)
and the Veliki Krivelj copper-gold porphyry open-pit mine (see Figure 1: Location Map).
Teo Dechev, CEO and President of Mundoro commented, “This Agreement is our third partnership in
Serbia, which reflects the continued industry interest in Timok, the Tethyan B elt and demonstrates the
prospectivity of Mundoro’s land package within this region. Mundoro has approximately C$4.6 million
(US$3.5 million) in treasury, an earn-in agreement with JOGMEC for the Timok North Projects, an earn-in
agreement with Freeport for the Freeport- Mundoro JV Project, and an option agreement with a private
company for the Saje Project in Bulgaria. Realizing value for our mineral property portfolio of over 10
licenses with multiple targets on various license is one of our corporate priorities.”
Summary of Key Earn-In Terms
Pursuant to the Agreement, Mundoro has granted to Freeport an option to earn, over two phases, up to
a 75% interest in the Freeport -Mundoro JV Project by sole funding expenditures of up to US$45 million
(C$59.2 million) as follows:
Phase One:
● Freeport has the right to earn a 51% interest in the Freeport -Mundoro JV Project by sole -
funding US$5 million (C$6.6 million) in expenditures by the third anniversary of the Agreement.
● Mundoro will be the operator of the Freeport-Mundoro JV Project in Phase One.
Phase Two:
● Following Phase One, Freeport has the right , exercisable within 60 days, to elect to enter Phase
Two, whereupon it can earn an additional 24% interest in the Freeport- Mundoro JV Project, for
a total 75% interest, by sole-funding an additional US$40 million (C$52.6 million) in expenditures
(the “Phase Two Option”) by the fifth anniversary of the election date.
● If Freeport (a) elects not to enter Phase Two, or (b) does not satisfy the Phase Two Option , then
Freeport will, for a period of ten (10) years thereafter, pay to Mundoro an annual fee of
US$100,000 (C$131,675) in each year in which the annual work program and budget adopted by
the joint venture is a work program and budget proposed by Freeport.
Additional Terms:
● The Agr eement is subject to: (i) Freeport’s satisfaction with, or waiver of, a due diligence
condition; and (ii) the transfer of the Freeport- Mundoro JV Project from a current Mundoro
Serbian subsidiary to a special purpose Serbian subsidiary wholly-owned by the joint venture.
● If either party’s interest in the joint venture is reduced below 10% through dilution, the diluted
party’s interest will be converted to a 2% Net Smelter Returns Royalty (“NSR”) of which up to 1%
NSR can be re-purchased.
Project Information
LEGAL*46281289.2
Savinac license
Savinac license is a 90 sqkm area that is located 15 km southwest of the Bor Mine. The property contains
a significant area of hydrothermal alteration covering 14 sqkm elongated north -south area which hosts
epithermal and porphyry targets marked by Cu -Mo-Au-Ag-Pb-Zn geochemical anomalies. The 9 km of
hydrothermal alteration is defined in alteration mapping and coincides with an elongate zone of
demagnetization of the host volcanic rocks. Within the hydrothermal alteration, exploration work
identified the Tilva Rosh epithermal gold target which contains 12 m of 30 g/t gold and 171 g/t silver.
Drill results from Tilva Rosh identified the continuation of the main north -south trending mineralized
structure which strikes towards the north and u nder a lithocap that remains untested. The targets
identified to date either require further exploration work or remain untested.
Bacevica license
Bacevica license totals 148 sqkm and is located directly south of the Savinac license. The property
contains 8 km of hydrothermal alteration directly linked to the Savinac hydrothermal alteration to the
north. Mundoro has completed geological mapping, rock and soil sampling, ground magnetics and
tested various targets with shallow , reverse circulation , scout dr illing. The targets identified to date
either require further exploration work or remain untested.
Further Joint Venture Discussions
The Company continues to have ongoing discussions regarding potential joint ventures for Mundoro’s
two Timok South licens es, Sumrakovac and Osnic, and the licenses in Bulgaria. Although there are
ongoing discussions, the Company cannot provide assurance that a transaction will be concluded as a
result of these discussions.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a Canadian mineral exploration and development public company focused on building value
for its shareholders through directly investing in mineral projects that have the ability to generate future
returns for shareholders. The Company currently holds a diverse portfolio of projects in two European
countries as well as an investment in a producing gold mine in Bulgaria and a feasibility stage gold
project in China. The Company has earn -in agreement s with: JOGMEC for the Timok North Projects,
Freeport for the Freeport-Mundoro JV Project, and an option agreement with a private company for the
Saje Project in Bulgaria. Mundoro’s common shares trade on the TSX Venture Exchange under the
symbol "MUN".
For further information please contact:
Teo Dechev, CEO, President and Director of Mundoro Capital Inc. at +1-604-669-8055
Qualified Person
Technical information contained in this Press Release has been reviewed and approved by Mr. G.
Magaranov, P. Geo., Qualified Person as defined by National Instrument 43-101.
LEGAL*46281289.2
Caution Concerning Forward-Looking Statements
This News Release contains forward-looking information and statements (“forward-looking statements”)
under applicable securities laws. All statements, other than statements of historical fact, include d or
incorporated by reference in this News Release are forward -looking statements, including, without
limitation, the completion of exploration work on any Projects and licenses and results of that
exploration work, the prospect of one or more joint ventu res and other statements regarding activities,
events or developments that the Company expects or anticipates may occur in the future. These
forward-looking statements can be identified by the use of forward -looking words such as "will",
"expect", "intend", "plan", "estimate", "anticipate", "believe", “promising”, “encouraging” or "continue"
or similar words or the negative thereof. The material assumptions that were applied in making the
forward-looking statements in this News Release include expectations as to the Company's future
strategy and business plan and execution of the Company's existing plans. There can be no assurance
that the plans, intentions or expectations upon which these forward -looking statements are based will
occur. We caution readers o f this News Release not to place undue reliance on forward looking
statements contained in this News Release, which are not a guarantee of performance and are subject
to a number of uncertainties and other factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. These factors include general economic
and market conditions, changes in law, regulatory processes, the status of Mundoro's assets and
financial condition, actions of competitors and the ability to implement business strategies and pursue
business opportunities. The forward -looking statements contained in this News Release are expressly
qualified in their entirety by this cautionary statement. The forward -looking statements included in this
News Release are made as of the date of this News Release and Mundoro undertakes no obligation to
publicly update such forward -looking statements to reflect new information, subsequent events or
otherwise, except as required by law. Shareholder s are cautioned that all forward -looking statements
involve risks and uncertainties and for a more detailed discussion of such risks and other factors that
could cause actual results to differ materially from those expressed or implied by such forward -looking
statements, refer to the Company's filings with the Canadian securities regulators available on
www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Figure 1: Location Map